My reasons for short.
1:This is an ABCD pattern which is completed.
2:Fibonacci 1.618 meets with structure resistance, where the market is likely to reverse.
3:Negative divergence in RSI which is in overbought territory.
I will looking for short opportunites on lower timeframes. My target will be 184.536.
Everything is happening in a way like it is written in the Bible.
The B point is between (x-A) FibRetracement 0.382 and 0.618
The C point is bigger than (x-A) FibExtension 1.27 but it does't touch 1.414.
Everything is perfect.
I'm waiting for comletion point which is (x-C) FibRetracement 0.786.
Stop Loss: Under X with as much as ATR will show at the...
The last lower high was broken in the short trend. I expect that the price will test back to the zone, that I appointed with the red rectangle. Here I would sell the market, but only if RSI is in overbought position.
If the pair tests back the Fib Retracement 0.5 where we can find the previous structure and swing lows, we can short the pair with 1.96 RR ratio.
The only criteria is that the RSI must be in overbought position, so somewhere higher than 70%.